Having been a household name for the past two decades, Nikora has become quite a player on the Georgian market. Looking for expansion, JSC Nikora, a holding company of the Nikora Group, has decided to issue GEL 28 million in bonds listed on the Georgian Stock Exchange. The process went through TBC Capital, one of the largest research, advisory and brokerage solutions company, that has been working with Nikora Group since 2017, with this being the fourth joint venture placement.
For the fourth emission, JSC Nikora’s bonds have been placed in the national currency, allowing the company to avoid significant currency risks. This is the very first bond on the Georgian market to be linked to the Tbilisi Interbank Interest Rate (TIBR). With this transaction, the parties are endorsing the promotion of TIBR and its establishment on the local capital market.
“We are delighted to witness yet another successful placement of JSC Nikora’s bonds through TBC Capital. JSC Nikora, along with Nikora Trade Ltd, is one of the most active players on the Georgian capital market,” stated Goga Tkhelidze, Deputy CEO of TBC Bank.
Financial institutions have shown a tremendous interest in the company’s bonds as the placement has been acquired as soon as possible. It is noteworthy that, just like other public bonds in the Georgian national currency, these bonds of JSC Nikora are also pledged to the National Bank of Georgia, giving investor commercial banks the opportunity to attract additional resources in GEL.
“This year the company received a BB- / Stable credit rating from Scope, while the securities level was BB / Stable. It is a noteworthy detail that according to Fitch, the credit rating of the Georgian Republic is determined by BB / Stable and coincides with the credit rating of JSC Nikora Securities.
Our company has been successfully performing security operations for several years. The decision to issue the bond in GEL is of huge importance. It is no secret that any attracted funds have a corresponding currency risk. The entire income for Nikora is generated in Georgia, therefore it was advisable to raise funds in the national currency. It should be noted that the attracted resources will continue to be spent on the company,” said JSC Nikora CEO Irakli Bokolishvili.
Mary Chachanidze, the Managing Director at TBC Capital, had a few words to say as well, as she positively estimated the decision to emit bonds in the national currency.
“I would like to once again congratulate JSC Nikora on the placement of another bond, I wish the group success and I am confident that in the future we will consolidate the Georgian capital market with several joint issuances,” stated TBC Capital Managing Director Mary Chachanidze.
Nikora was founded in 1998 and ever since has been an unchanging leader in the food market for 21 years. The largest supermarket chain on the Georgian market has more than 280 supermarkets, produces and sells about 500 types of products, and has more than 6,000 employees.